Insider Monkey

11 Bank Stocks With Insider Buying and Selling Last Week

Fahad Saleem
9 min read

In This Article:

In this article, we will take a look at some banks stocks with insider buying and selling activity. To see more such stocks, go to 5 Bank Stocks With Insider Buying and Selling Last Week.

The collapse of the Silicon Valley bank sent tremors throughout the global financial system. As of March 15 morning, European banks were starting to feel the heat, with Credit Suisse Group AG (NYSE:CS) losing almost a quarter of its value after the Swiss bank’s largest investor, Saudi National Bank, categorically announced that it cannot provide more financial assistance to the bank.

The Federal Reserve Running Out of Options

Several bank stocks which rose after the US government’s quick intervention to stop the spillover of the current crisis were falling on Wednesday morning. The recent crisis has created a new problem for the Federal Reserve, which was on its path of monetary tightening to quell inflation. However, several analysts are now seeing the Federal Reserve hitting brakes on its rate-hike spree, with some even expecting rate cuts. While the Federal Reserve wants to control inflation, it does not want the financial system to break down in the process.

Analysts at Goldman Sachs believe the Federal Reserve will not announce any new interest rate hikes at its upcoming meeting, as the firm sees “considerable uncertainty” about the Fed’s roadmap.

Should You Buy the "Incredible Bargain" In Bank Stocks?

But some believe the government will be able to control the crisis. Bill Ackman of Pershing Square on March 13 wrote in a tweet that he believes regional bank stocks are an “incredible bargain now as long as the gov’t does the right thing, and I am confident it will.” Ackman has been vehemently calling for a government guarantee on deposits to increase consumer confidence.  Here is what Ackman said in his tweet about regional bank stocks:

“This means that one of the great trades would be to buy regional bank stocks or ETFs here. And the massive decline in rates makes this an even better investment now. This is not without real risk, but it does offer very attractive asymmetry. I would be surprised if Warren isn’t putting capital to work in his favorite regional banks now. Unfortunately, I won’t be able to participate as we decided that we wouldn’t invest long or short in banks as I want to continue to be part of this conversation and be able to share my views without the typical accusations against investors who share their views while having a trade on.”

Bank Stocks With Insider Buying and Selling Last Week
Bank Stocks With Insider Buying and Selling Last Week

Luis Louro / shutterstock.com

Is the Current Turmoil an Overreaction?

Wells Fargo analyst Jared Shaw said in a note to investors that the selloff in the banking sector was “an overreaction to fears of a potential bank run, as the space is well-capitalized.” The analyst thinks banks have “significant sources of additional liquidity.” Shaw thinks that “challenges from rates” will have an earnings impact for banks but they do not pose an “existential crisis” to these companies. The analyst said he does not think that depositors should lose confidence. At Morgan Stanley, analyst Manan Gosalia called the Silicon Valley bank problems as "highly idiosyncratic.” The analyst said the problem of the collapsed bank should not be “read-across to other banks we cover.”

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